$1000 value for 100 shares of a $10 stock. $50 for a put option at $7.50.
Stock goes to $5. You have $700. Stock stays at $10. You have $950. Stock goes to $15. You have $1450.
$50 for a $10 call (being generous on the price, here) Stock goes to $5. You have zero. Stock stays at $10. You have zero Stock goes to $15. You have $1450.
Unless otherwise indicated, this is the personal viewpoint of David Miller and not necessarily that of Biotech Stock Research, LLC. We're on Twitter at BiotechStockRsr
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